Facebook (FB) – Analysts’ Recent Ratings Updates
Facebook (NASDAQ: FB) received a number of ratings updates from brokerages and research firms in the last week:
- Facebook ‘s EPS estimates were cut by analysts at JMP Securities. They now have an “outperform” rating and a $30.00 price target on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
- Facebook was upgraded by analysts at Stifel Nicolaus from a “hold” rating to a “buy” rating. They now have a $26.00 price target on the stock. They wrote, “Facebook reported modest upside to our estimates and consensus, with an impressive 14% of total revenues from mobile. The contribution from mobile more than offset a $39mn q/q decline in desktop ad revenues. … Importantly, total revenue growth accelerated and margins increased. We believe the growth and margin ramp will extend into 2013. Estimates increase slightly. We would use the weakness surrounding the lockup expirations to add to positions.”
- Facebook was upgraded by analysts at Citigroup from a “neutral” rating to a “buy” rating. They now have a $30.00 price target on the stock. They wrote, “What investors have for the first time since the FB IPO is fundamentals acceleration WITH a reasonable valuation (30 P/E for 30% EPS growth). Further, two of the biggest FB risks (Zynga dependency and Mobile monetization) appear to have been down-sized. And we’ve still seen zero contribution from newer initiatives, eg gifts, FBX, etc. Yes, lockups loom, but we believe long-term investors can use weakness around said lockups as a way to leg into a fundamentals positive/valuation reasonable long.”
- Facebook was upgraded by analysts at Bank of America to a “buy” rating.
- Facebook had its price target raised by analysts at Cantor Fitzgerald from $26.00 to $28.00. They now have a “buy” rating on the stock.
- Facebook was downgraded by analysts at Bank of America from a “buy” rating to a “neutral” rating. They now have a $31.00 price target on the stock.
- Facebook was upgraded by analysts at Keefe, Bruyette & Woods from a “market perform” rating to an “outperform” rating. They now have a $52.00 price target on the stock.
- Facebook had its price target raised by analysts at Jefferies Group from $30.00 to $32.00. They now have a “buy” rating on the stock. They wrote, “We reaffirm Buy as revenue and EPS edged expectations in a solid 3Q, despite a $52MM FX headwind. The qtr saw weakness in Payments & Other, no change from 2Q. But the real story is the ad business, which beat our ests despite having ~11 new products like Offers remaining in nascent stages. Mobile progress is also impressive, already accounting for 14% of ad rev. We are raising our PT to $32 as we take up our out-year ad rev ests.”
- Facebook had its “buy” rating reaffirmed by analysts at Wedbush. They now have a $35.00 price target on the stock. They wrote, “We increased our FY:12 estimates for revenue to $5.02 billion from $4.96 billion and for EPS to $0.47 from $0.43 to reflect Q3 upside, a higher advertising run-rate, an additional month of payments revenue in Q4, and lower expenses. Our FY:13 estimates for revenue go to $6.37 billion from $6.07 billion and EPS go to $0.65 from $0.55 on higher advertising and lower expenses. … Our price target reflects a value of $60 per MAU at Facebook’s peak MAU level with a conservative monetization assumption of $1 per MAU per month for five years.”
- Facebook had its price target lowered by analysts at Goldman Sachs to $35.00. They now have a “buy” rating on the stock. They wrote, “With 3Q12 mobile sales growth estimated at 600% qoq to $153mn, we believe fears over FB’s ability to profit from mobile will subside. As we expect the $4mn per day 3Q12 Sponsored Story run rate will continue to ramp in 4Q12, we are forecasting sales from these to come in at around $430mn, at the midpoint of our sensitivity analysis. Assuming the same 25%/75% desktop/mobile split, this would equate to qoq mobile sales growth of 115%. In 2013, if Sponsored Stories come in at the low end of our sensitivity range of $1.9bn it would represent growth of 180% yoy, versus right hand rail of $3.79bn, or +2% yoy growth.”
Facebook opened at 23.2299 on Thursday. Facebook has a 1-year low of $17.55 and a 1-year high of $45.00. The company has a market cap of $49.767 billion and a price-to-earnings ratio of 80.38.
Facebook, Inc. (Facebook) is engaged in building products to create utility for users, developers, and advertisers.